QUESTION

What recourses do I have to prompt delinquent repayment from a developer who accepted 401k funds?

Asked on Nov 19th, 2014 on Real Estate - Colorado
More details to this question:
I utilized a self-directed investment tool through a Bank and Trust to invest my SEP-IRA funds in a land/building development. The terms were for 18month to acquire an old parcel of land and then to sell that land to the bigger project. The land and subsequent sale were completed two years ago but the terms of the original investment allowed the money to stay invested for the same growth rate; to be called due by me at any time. Six months ago I called it due but the developer has dodged his commitment and repaid none of the investment. This raises two questions: 1. What is the standard recourse for me to recover my principal and pledged interest? 2. Does the fact that the Developer accepted IRA funds and the rules attached bring into play any regulatory agencies, like the SEC, for added leverage toward completing the terms of the Agreement?
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1 ANSWER

Litigation Attorney serving Castle Rock, CO
3 Awards
You have a breach of contract and money damages claim.  Likely the reason the developer is dodging you is that he owes more than he can afford to pay.  I recommend forcing your way to the head of the line before he declares bankruptcy.  The fact that you invested IRA funds provides you no assistance in recovery of those funds. Contact an attorney ASAP.   Good Luck!
Answered on Nov 19th, 2014 at 2:36 PM

Call Don at (303) 688-0944 or email at Reception@RobinsonandHenry.com This information is provided AS IS; and does not create Client Relationship.

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